Kuehne + Nagel to boost $30m Derrimut facility

E-commerce continues to drive new construction in Melbourne’s west with national developer Vaughan Constructions signing a new deal with global logistics provider Kuehne + Nagel to significantly enhance its $30 million Derrimut facility.

The design & construct contract will deliver an 8,000 square metre extension to the 20,000sqm Boundary Road distribution centre with an expected completion date of November 2018.

Vaughan Constructions director Mark Byrne said the new facility will aid Kuehne + Nagel in delivering goods with optimised speed and accuracy as competition in the integrated and contract (3PL) logistics sector intensifies within the booming online retailing economy.

“The entry into the market by the world’s biggest online players has brought Australia into a new phase of online shopping as consumer expectations rise, driving the need for all players to offer the sort of premium service that has delivered success for the top firms.

“And of course that has impacted our business across the country from Melbourne to Sydney to Darwin and elsewhere, with logistics firms gearing up for the challenge by updating and expanding their operations,’’ Mr Byrne said.

He said Vaughan’s recent building portfolio completions included a string of e-commerce related industrial facilities for leading logistics providers including Linfox, GMK, K&S Freighters, and Northline with the recent completion of works on a 6,000 square metre extension of GMK Logistics facility in Gregory Hills NSW and Linfox’s $10 million, 3,000 square metre, North Star intermodal facility at East Arm wharf in Darwin.

Mr Byrne said Kuehne + Nagel’s digitalised platform, which allowed customers to track shipments in real time, was one part of a wholistic service providing online retailers with a competitive edge.

“Acting as an arm within the retailer’s own business, they can offer next-day delivery to the consumer’s doorstep while reducing, and in some cases eliminating, rental and sales labour costs,’’ Mr Byrne said.

According to an IBISWorld report the transport, postal and warehousing sector is now worth $188 billion annually, employing well over half a million workers, with forecasts of continued growth.